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China is now the third-largest fuel ethanol producer after Brazil and the United States. Production of fuel ethanol and corn alcohol consumed 8.9 million tons of corn in China last year, accounting for 44.5 per cent of industrial consumption of corn.

Demand from ethanol makers, sugar producers and feed factories, has exhausted some of the nation's corn stocks. An ethanol producer claimed its employees had to go to over 100 grain depots in Northeast China for their supplies this year.

Jiang said China's exports of corn are unlikely to reach 5 million tons in the second half of this year as previously estimated. The nation exported about 8.61 million tons of corn last year.

Meanwhile, more enterprises have begun to import corn. In July, a sugar maker ordered 50,000 tons of corn from the United States. Experts also suggested the Chinese Government strengthen its administration of corn processing plants in a bid to avoid major fluctuations in demand and prices.

(China Daily 11/24/2006 page9)

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